Lucknow: Bank of Baroda (BOB) has posted a strong financial performance for the quarter ending 31st December 2024, reporting consistent growth in profitability, asset quality, and business expansion. The bank’s results for Q3FY25 and the first nine months of FY25 (9MFY25) showcase resilience in both operational and financial parameters.
Key Financial Highlights:
- Net Profit: BOB recorded a Net Profit of INR 4,837 crore for Q3FY25, a solid increase of 5.6% YoY compared to INR 4,579 crore in Q3FY24. For 9MFY25, the bank’s Net Profit stood at INR 14,533 crore, reflecting a growth of 12.6% YoY from INR 12,902 crore in 9MFY24.
- Operating Profit: The bank’s Operating Profit for Q3FY25 reached INR 7,664 crore, marking a 9.3% YoY growth. This growth was driven by a 34.1% YoY surge in Non-Interest Income, which amounted to INR 3,769 crore in Q3FY25.
- Return on Assets (ROA): BOB maintained a robust ROA of 1.15% for Q3FY25, with an annualized ROA of 1.17% for 9MFY25, indicating strong asset utilization.
- Return on Equity (ROE): The ROE for Q3FY25 stood at 17.01%, and 17.03% for 9MFY25, demonstrating the bank’s efficient use of shareholder equity.
Asset Quality:
- Gross NPA: BOB’s Gross NPA ratio improved to 2.43% in Q3FY25, down from 3.08% in Q3FY24, reflecting a 65 basis points YoY reduction. The Net NPA ratio also declined to 0.59% in Q3FY25 from 0.70% in the same period last year.
- Provision Coverage Ratio (PCR): The bank’s PCR stood at a healthy 93.51% including TWO (Total Write-Off), and 76.03% excluding TWO in Q3FY25, reinforcing its strong provisioning strategy.
- Slippage Ratio: BOB’s Slippage Ratio remained well-contained at 0.90% for Q3FY25 and 0.81% for 9MFY25, highlighting the bank’s prudent asset management.
Credit and Deposit Growth:
- Advances: Global advances grew by 11.8% YoY to INR 11,73,034 crore in Q3FY25, supported by strong retail loan growth. The Retail Loan Book grew by 19.5% YoY, led by advances in Auto Loans (21.1%), Home Loans (16.6%), Mortgage Loans (16.3%), and Education Loans (16.9%).
- Deposits: BOB’s Global Deposits increased by 11.8% YoY to INR 13,92,461 crore. Domestic Deposits grew by 9.2% YoY to INR 11,65,874 crore, while International Deposits saw a remarkable rise of 27.3% YoY, amounting to INR 2,26,588 crore.
- Agriculture and MSME Loans: The bank’s Agriculture loan portfolio grew by 12.5% YoY to INR 1,51,050 crore, and the MSME portfolio increased by 13.6% YoY to INR 1,31,769 crore, underscoring the bank’s commitment to supporting key sectors of the economy.
- Gold Loan Portfolio: BOB’s Gold Loan portfolio, which includes both retail and agricultural loans, grew by 29.1% YoY to INR 58,172 crore in Q3FY25.
Capital Adequacy and Liquidity:
- Capital Adequacy Ratio (CRAR): The bank’s CRAR stands at a healthy 15.96% as of December 2024, with Tier-I Capital at 13.44% (CET-1 at 12.38% and AT1 at 1.06%). This signifies a strong capital position to support future growth.
- Liquidity Coverage Ratio (LCR): BOB’s LCR stands at a strong 130%, indicating ample liquidity to meet short-term obligations.
Cost-to-Income Ratio:
- The Cost-to-Income Ratio for Q3FY25 improved marginally by 4 bps YoY to 49.53%, reflecting the bank’s efforts to optimize operational efficiency.
Outlook:
Bank of Baroda continues to deliver strong financial performance across key parameters, backed by a robust asset quality and an expanding loan book. The focus on retail banking, including home, auto, and education loans, alongside strong growth in agriculture and MSME sectors, positions the bank well for sustained growth in the coming quarters.
As the Indian banking sector shows resilience in the face of global challenges, Bank of Baroda’s steady performance demonstrates its strategic focus on maintaining a healthy balance sheet, robust asset quality, and efficient cost management.
With a healthy capital adequacy ratio, solid profitability, and a commitment to expanding its retail and corporate loan portfolios, Bank of Baroda is well-placed to continue its growth trajectory in FY25 and beyond.
